Your college roommate approaches you 6 months from now in need of accounting advice.The roommate inherited a rental building from a dear uncle with a FMV of $2,000,000.The details about the building are as follows:

1. Gross rent - $100,000
2. Depreciation - $55,000
3. Operating expenses - $50,000
4. Basis to roommate $1,000,000

The roommate won't sell it outright and instead wants to contribute the building to either a Partnership (you can be the partner if you agree to do the accounting work), S corp, or C corp.The roommate is working full-time as a production assistant earning a salary but she also has passive income.

In 1 to 2 pages identify the issues relating to: a) contribution b) operations (think about the operating loss), and c) eventual liquidation for each entity choice.State the rules you are applying and apply to the facts above.Conclude with a recommendation.